Today’s Outlook:

• The Dow Jones Industrial Average climbed 383.32 points, or 0.92%, and closed at 41,964.63. The S&P 500 jumped 1.08% to end at 5,675.29, and the Nasdaq Composite advanced 1.41% to settle at 17,750.79. The central bank kept the federal funds rate at a range of 4.25% to 4.5%, a decision that was widely expected. The Fed kept its outlook at two rate cuts coming in the remainder of this year. While labor market conditions are solid, and inflation has moved closer to their 2% longer-run goal.

• MARKET SENTIMENT : BI7DRR and FED FUNDS RATE maintained at 5.75% and 4.25% to 4.5%, respectively.

• FIXED INCOME AND CURRENCY : U.S. Treasury yields edged lower on Wednesday after the Federal Reserve kept benchmark interest rates unchanged but downgraded its collective outlook for economic growth while raising its inflation forecast. The benchmark 10-year Treasury note yield slipped more than 3 basis points to 4.247%, and the 2-year Treasury yield traded more than 6 basis points lower at 3.979%. The Federal Open Market Committee kept its key borrowing rate targeted in a range between 4.25%-4.50%, where it has been since December, but still indicated that reductions will likely occur later this year. Markets were pricing in virtually no chance of a move at this week’s two-day policy meeting. The dollar pared gains against the euro after the Federal Reserve held interest rates steady as expected on Wednesday, but indicated policymakers anticipate reducing borrowing costs by half a percentage point by the end of this year. The euro was 0.49% lower at the day at $1.0889, after slipping as low as $1.0860, earlier in the session. The dollar index, which tracks the greenback against six major currencies, was last up 0.35% at 103.65.

• EUROPE : The pan-European Stoxx 600 index closed 0.19% higher, as sectors and major bourses diverged. Germany’s DAX snapped a three

-day winning streak to end 0.4% lower, as defense firms including Rheinmetall and Hensoldt strong performers this month declined. It comes after German lawmakers voted on Tuesday to reform the country’s so-called debt brake rule, which will allow a greater national spend on defense and permit the creation of a 500 billion euro ($546 billion) climate and infrastructure fund. Traders are also monitoring news that U.S. President Donald Trump and Russian leader Vladimir Putin agreed on Tuesday to taking steps toward a ceasefire in Ukraine. Trump on Wednesday said he also had a “very good” call with Ukrainian President Volodymyr Zelenskyy.

– The euro was 0.49% lower at the day at $1.0889, after slipping as low as $1.0860, earlier in the session. The dollar index, which tracks the greenback against six major currencies, was last up 0.35% at 103.65.

• ASIA : Asia-Pacific markets traded mixed on Wednesday, following declines on Wall Street after a sell-off in technology stocks picked up pace. Japanese markets were in focus for investors. The Bank of Japan held interest rates steady at 0.5%, in line with expectations, as the central bank weighed the potential impact of U.S. President Donald Trump’s tariffs. Japan’s benchmark Nikkei 225 lost 0.25% in choppy trade to end the day at 37,751.88, while the broader Topix index increased 0.45% to 2,795.96. Over in South Korea, the Kospi index advanced 0.62% to close at 2,628.62 while the small-cap Kosdaq fell 0.96% to 738.35. Mainland China’s CSI 300 closed flat at 4,010.17 while Hong Kong’s Hang Seng Index was flat in its last hour. India’s benchmark Nifty 50 rose 0.39% while the broader BSE Sensex picked up 0.28% as at 1.15 p.m. local time. Australia’s S&P/ASX 200 ended the day 0.41% lower at 7,828.30.

– The Japanese yen weakened on Wednesday, with the USD/JPY exchange rate climbing to 148.7500 as of 1:12 PM PDT, reflecting a slight drop of 0.5200 points or 0.35% from the previous day’s 149.6170, though later reports suggest further easing. The softening of the yen comes after the Bank of Japan (BOJ) opted to maintain its interest rates unchanged on March 18, 2025, a decision that followed the U.S. Federal Reserve’s move to hold its rates steady on the same day. Market sentiment shifted as traders interpreted the BOJ’s steady policy as a signal of continued dovish stance

• COMMODITIES : Gold prices edged higher to hover near all-time highs on Wednesday after the U.S. Federal Reserve stayed put on rates as widely expected and indicated reducing borrowing costs by half a percentage point by the end of this year. Spot gold was up 0.2% at $3,039.09 per ounce, after hitting an all-time high of $3,045.24 earlier in the session. U.S. gold futures settled mostly unchanged at $3,041.20. Fed fund futures imply traders see a 62.1% chance of the Fed resuming rate cuts in the June meeting, up from 57% before the decision. Gold, traditionally viewed as a safe-haven investment during times of inflation or economic volatility, has climbed over 15% so far this year. Gold becomes more attractive when interest rates are low, as it is a non-yielding asset. Oil prices held steady Wednesday as the Federal Reserve sees heightened economic uncertainty. Brent crude futures rose 22 cents, or 0.31%, to close at $70.78 a barrel. U.S. West Texas Intermediate crude (WTI) gained 26 cents, or 0.39%, to settle at $67.16. Crude futures, though positive for the day, eased slightly in the wake of the Fed’s decision. Traders are worried President Donald Trump’s tariffs could slow economic growth and hit oil demand. U.S. crude stocks rose by 1.7 million barrels to 437 million barrels last week, U.S. government data showed on Wednesday, which was higher than the 512,000-barrel rise analysts had expected.

• JCI closed on a technical rebound to 6311.66 (+1.42%). Despite the increase in JCI was triggered by the price increase of one of the big caps DCII which closed ARA, the market will still tend to be volatile as there is no significant net foreign buy yet. The next closest horizontal resistance is at 6375 level. However, we expect JCI to continue to be volatile while testing and holding at the psychological support of 6000.

Company News

• STAA: Surging 88 Percent, STAA 2024 Profit Hits IDR 1.28 Trillion
• CUAN & PTRO: CUAN Increases PTRO Shares by IDR865M
• ANJT: Invaded by Ciliandra Fangiono, ANJT’s Directors-Commissioners Compactly

Domestic & Global News
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